Greetings and welcome to the Lexington Realty Trust third quarter Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions). As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ms. Lisa Soares, Investor Relations for Lexington Realty Trust. Thank you, Ms. Soares, you may begin.

Thanks, Latania. Hello and welcome to the Lexington Realty Trust third quarter conference call. The earnings press release was distributed over the wire this morning, and the release and supplemental disclosure package will be furnished on Form 8-K. In the press release and supplemental disclosure package, Lexington has reconciled all historical non-GAAP financial measures to the most directly comparable GAAP measure in accordance with Regulation G requirements. If you did not receive a copy, these documents are available on Lexington's website at www.lxp.com, in the Investor Relations' section. Additionally, we are hosting a live webcast of today's call, which you can access in the same section. At this time, management would like me to inform you that certain statements made during this conference call, which are not historical, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Lexington believes expectations reflected in any forward-looking statements are based on reasonable assumptions. Lexington can give no assurance that its expectations will be attained. Factors and risks that could cause actual results to differ materially from those expressed or implied by forward-looking statements are detailed in today's press release, and from time to time in Lexington's filings with the SEC. Lexington does not undertake a duty to update any forward-looking statements. With us today from management are Will Eglin, CEO and President; Robert Roskind, Chairman, Pat Carroll, Chief Financial Officer, Natasha Roberts, Executive Vice President and Director of Real Estate Operation and other members of management. I would like to turn the call over to Will for his opening remarks.

Thanks, Lisa, and welcome to all of you. Thank you for listening in to our third quarter conference call. We are pleased to report what we believe of strong results in our real estate portfolio for the third quarter of 2008, as we continue to execute well on our opportunities to de-leverage our balance sheet. For the quarter our reported funds from operations were $0.40 per share, which was inline with our expectations. From an investment standpoint it was acquire quarter with activity limited to acquiring two properties and further capitalizing on tumultuous conditions in the debt markets by repurchasing $25.5 million face value of our 5.45% MLP exchangable notes at a 10.7% discount. We continue to see tremendous opportunities to repurchase our own debt and subsequent to quarter end, we repurchased $32 million of our exchangable notes at a 25.8% discount and yield to maturity of about 16.3%. We plan continue to take advantage of these opportunities, which offer extremely high risk adjusted returns with added positive of reducing our leverage. We continue to improve the company’s financial flexibility as we reduced our overall leverage by $54 million during the quarter and ended the quarter with about $135 million of cash. We also believe that is part of our strategy to maximize value and reduce leverage pursuing and executing well on property dispositions and related capital recycling is very important. To that end during the third quarter we completed 15 asset sales for $22.6 million at a cap rate of 6.6%. Over the next few months, we will be marketing for sale about $400 million of properties in order to create liquidity to repurchase our debt at a discount. Given the returns available under current market conditions, we can earn substantially more by repurchasing our own debt than we…

Thanks Will. Results of operations in the third quarter of ‘08 include the impact of the acquisition of our four co-investment programs in the second quarter of 2007 and a formation of our co-investment program with Inland in the fourth quarter of ‘07. These are the significant drivers of the fluctuations between comparable periods. During the quarter, Lexington had gross revenues of a $105.5 million comprised primarily of lease rents and tenant reimbursement. The decrease in rental revenue in the third quarter of ‘08 compared to the third quarter of ‘07 relates primarily to the sale of properties to the Inland joint venture in the fourth quarter of 2007 and the first six months of 2008, and a two lease termination that we talked about on the last conference call. Reduction in interest expense of $10.9 million relates to the leveraging of the balance sheet, particularly the repurchase of $150.5 million of the exchangeable notes and $70.9 million of the Trust preferred securities during 2008. Debt satisfaction gains of $2.3 million relates to satisfying a portion of our 5.45 exchangeable notes at a discount to the original principal. Equity and earnings losses of non-consolidated entities with a loss of $1.5 million in the third quarter of ‘08, which relates primarily to our share of the impairment charges recorded by Concord. During the third quarter, Concord recorded reserves on its loan portfolio at $6 million and on its bond portfolio of $1.2 million, and also reported a gain on CDO debt extinguishment of $5 million. The loan reserves in the third quarter related to three loans. One with our property in Palm Beach Florida, with a face amount of $19 million, and the reserve in the third quarter was $1 million bringing the cumulative reserve on this investment to $3 million.…

Thanks Pat. As of September 30, 2008 after selling 15 properties for $22.6 million during the third quarter, and including the 47 properties that are held in joint ventures, our portfolio totaled approximately $49 million proceeds. 18 leases were either executed or extended during the quarter. We have maintained our previous occupancy level of approximately 95% at quarter end, and expect to remain at or above our current occupancy level through year end. Out of the 18 leases signed, six were new and accounted for about 144,000 square feet and 12 were renewals or extensions, which accounted for about 633,000 square feet. We lost approximately 228,000 square feet of occupancy due to lease expirations that were not renewed during the quarter. Subsequent to the close of the quarter on September 30, we executed seven leases totaling approximately 1.3 million square feet including an 84,000 square foot lease at our office property in Long Beach, California. And we are currently negotiating four new leases and four lease extensions totaling approximately 700,000 square feet. Two expansions totaling approximately a 100,000 square feet are underway at two locations and we have four other potential expansion projects in discussion estimated at 300,000 square feet. In the fourth quarter, our leases with Raytheon on a 480,000 square foot office building and a 200,000 square foot industrial building in Long Beach, California will expire. We have a 55% ownership interest in these properties. The office building is largely subleased and as has previously been announced we have been able to negotiate lease extensions with some of the subtenants. As of today, the office building is approximately 70% leased and we hope to be fully leased over the next 12 to 18 months. In the efforts to retain tenants and compete with the market, we have seen…

Thanks Natasha. Overall, we believe Lexington is well positioned to capitalize on opportunities to lower leverage and this continues to be our highest priority. We continue to do well in our leasing efforts and our portfolio’s performance is inline with our expectations. Over the balance of the year and in to next year we expect to continue implementing our strategy to de-leverage the balance sheet and create additional liquidity in the form of asset sales. Our current expectation on guidance is for funds from operations per share to be in the range of $1.56 to $1.64 this year, and that is unchanged from last quarter and from the beginning of the year, when we gave guidance. This range does not include items that should be considered non-recurring such as lease termination revenue and gains on discharge of indebtedness as detailed in today's press release. Given our third quarter results, we believe we will reach our full year guidance and we will give 2009 guidance on our next conference call. That concludes our opening remarks. Operator, we will turn it back over to you to conduct the question-and-answer session.

Thank you. We will now be conducting a question-and-answer session. (Operator Instructions). Our first question comes from Tony Paolone with JPMorgan. Please proceed with your question.

Hi, it's Sarah King here for Tony. I just have a few follow-up questions for Natasha and then I have some general questions. I apologize if I missed the beginning of the call. So, I apologize that if some of this is already said. Anyways regarding Harcourt you touched on, Natasha, but what about BP America and the Bank One lease expirations, do you know how they will play out in 2009?

The Bank One lease expiration we are currently negotiating at least with a subtenant in that building.

Oh I'm sorry.

So, I expect occupancy to remain in that building.

Okay.

And that the BP building, they are leaving, and we are currently marketing that building for rent or for sale.

Okay. And then what about for the leases that you executed during the quarter, what was the cash on cash yield on the renewals?

We don’t have the figure available in relation to book value. The one place, where we had a step down was in our Northwest Pipeline facility in Salt Lake City, Utah, but other than that we had net, a pretty nice net increase in revenue compared to prior rents, and that’s detailed in page 34 of the supplemental.

Okay. Thank you. And then just in general regarding your financing roadmap, can you just layout your financing roadmap for the next couple of years as it relates things like your line of credit in terms of that place?

Well, we are in current negotiations with our lenders on both the term loan and the credit facility and the credit facility, which is nothing outstanding matures in June of next year, and term loan also is in June of next year, where we have the six month extension to push it back to December of '09. And like I said we are in discussions currently with the lending group of both facilities to get those extended.

Okay. And then just one last question is regarding the mortgage debt for your assets, how would you say that you are finding the availability for the mortgage debt and what are the terms look like today?

It extremely scarce right now, its end of the year and there is really very little capital available in the mortgage market. We expect in first quarter that might change a little bit when, wise companies now with their allocations are for next year, but, generally if you were in a position, where you really needed a mortgage right now, you could expect to pay quite a wide spreads. So, we are not in the mortgage market presently although we did fixed rate on a borrowing earlier at about 6.1% that we hope to close prior to yearend.

Okay. Thank you that’s all.

(Operator Instructions) Our next question comes from [Claude Pehowski], a private investor. Please proceed with your question.

Do you intend to maintain your current dividend and for how long?

Well, the dividend is, to clarify, the Board of Trustees on a quarterly basis and would be scheduled to be declared in December. And we’ve declared, 60 dividends in our life as a public company, the Board is well aware of the environment we are in and we will declare dividend that the Board determines to be appropriate for the company moving forward, after thought for deliberation as it always has. Our focus right now is getting our term in revolver in place so that we have sufficient accordion capacity to deal with all of our mortgages that mature over the next couple of years and secondarily trying to create some more liquidity in the property market to use to repurchase debt at big discounts. There have been a wave of reach that have reduced their paths recently to retain liquidity and the market has certainly responded favorably to that, but it's only been in the wake of the last five weeks of trading, where stocks have traded off significantly that you have seen companies taking that step. And I think that, the right course of action is to prudently look at the company needs going forward and be very, deliberate in our views about the appropriate dividend level and what our strategies should be with respect to that.

Thank you.

Our next question comes from Sheila McGrath with KBW. Please proceed with your question.

Good morning, Will. On the asset sales that you mentioned in the quarter, the cap rate was pretty attractive. I was wondering if you could give us some more details on those sales and also some more details on sales volumes that you expect going forward.

Sure, we think we did really well on sales, the big portion of that was the sale of bank branches back to Citizens Bank and when you have a chance to sell a building back to a tenant sometimes that’s a really good execution. So, we are very pleased with that. In terms of overall disposition volume, we have fairly good visibility on about $38 million of sales in the next 60 to 90 days and those are properties that aren't encumbered by debt. And we want to be in the market with about $400 million of other property to sell and those properties are encumbered by about $250 million of mortgage debt. One of the things that we think is very attractive that we have to offer potential buyers, recall that our financing strategies to put mortgage debt in place at the asset level, that’s assumable by other investors. So, we think that will be a key element of being able to execute well on a disposition strategy. And even though cap rates are going up to the extent we are selling properties at 8% to 9% cap rates if we can turn around and buy in our own debt with mid to upper teen yields, we think that's a trade and arbitrages that we should aggressively take advantage of.

Okay, great. And then the question on 100 Light Street, on Legg Mason is there a chance that they would need to stay beyond their, this expiration dates?

At this point there are not. They are telling us that they will be leaving at lease expiration.

Okay. Okay, thank you.

(Operator Instructions) There are no further questions in queue at this time. I would like to turn the call back over to, we did have one question just come into queue, from Mr. John Guinee from Stifel Nicolaus. Please proceed with your question.

Hi, John Guinee here. Thank you. First question, Pat, when you did the Newkirk merger did you ever think you would end up with a 50 page supplemental.

Actually John I knew I would.

And I have to ask it, are the numbers correct this time on the GAAP and cash.

Yes they are, John.

All right. Hold on guys, zillion questions, I just got, I think Raytheon is about a $20 million NOI number for a 2008, what do we expect that to be in 2009 and 2010 through your projections?

Well, in the office building, where we were 70% occupied, we are going to rank that building out of the net run of about $15 compared to $34 of rate down was planning, we expected a big roll down there. And the industrial building is going to be vacant now with 2000 feet. So, I am not looking at, a 20 million of comparison to what it will be going forward, but that's mathematically, where we are with respect to those two buildings.

Is that a consolidated or unconsolidated JV?

It's consolidated, because our ownership interest is 55%.

Got you. Did you do the acquisitions that you did this third quarter with or without Inland?

No, without. One was to complete a 1031 exchange and one was to be warehouse for another joint venture that we have been working on.

Got you. Erin do you have a question or--

Did you have any prospects for the industrial building Raytheon industrial building?

We do not

Not currently.

No, okay. Do you think that's a 12 or 18 month lease up or--

It would be very challenging.

Okay. Thank you.

We are also looking to sell it.

Once again.

We are also looking to sell it.

Oh, okay.

That's one of the 400 million for sale.

Correct.

Yes.

I got you. Okay. How should we look, you’ve got a Concord on your books at about a $135 million?

Right.

How should we look at that going forward?

Well, I mean, I am not really sure I understand the question. We are not looking to put any more money into Concord and it should remain relatively flat, they have slight earnings, which will increase the GAAP investment and we definitely do take cash out from the maturities of the assets it will go down, but it will be relatively flat investment for us.

Okay. Thank you very much.

There are no further questions in queue at this time. I would like to turn the call back over to management for closing comments.

Thanks again to all of you for joining us this morning. We continue to be very excited about our prospects for the balance of the year, and 2009, and as always we appreciate your participation and support. If you would like to receive our quarterly supplemental package please contact Lisa Soares or you can find additional information on the company on our website at www.lxp.com. And in addition as always you may contact me or the other members of our senior management team with any questions. Thank you and have a great day everyone.

This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.